Cost Of Setting / Starting Up Cooking Gas Retail Business In Nigeria (2023)

People are increasingly embracing gas as major cooking fuel in Nigeria. The reasons are not far-fetched as it is cheaper, fast and easy to use.

cost of setting up cooking gas business

One of the major ways of curbing Nigeria’s current unemployment menace is aggressive and massive embracing of entrepreneurship and setting up Small & Medium Enterprises (SMEs) by Nigerian youths.

This article is an evaluation of the cost of starting cooking gas retail business in Nigeria.

Starting cooking gas business in Nigeria is easy and requires not so many logistics especially in small scale.

Over the years, cooking gas business has remained very viable and on the rise.

The good thing about cooking gas business is that it can be set up at different financial capacities.

While some top oil and gas companies invest heavily into cooking gas business, the market is so large that smaller investors still have the ability and market to thrive and grow in the industry.

Cooking gas can be started in a big and in a smaller way, in a big way we mean setting up gas plants which mostly serves as feeder to other small cooking gas retailers.

Setting up cooking gas plants is usually done by big players in the gas industry like NIPCO, JUHEL etc.

Big things start small and you shouldn’t be discouraged to start smaller and according to your capital.

It is a very large market in which both big and small players thrive.

For clarity and precision, this article is out to explore the cost of setting up cooking gas plant business  in Nigeria at retail level.

Cooking Gas Apprenticeship

It is also very important for potential cooking gas entrepreneur to undergo certain level of apprenticeship.

The training and apprenticeship will give the following knowledge to the entrepreneur:

  • How to refill a gas cylinder.
  • How to gauge gas cylinder.
  • How to detect a leakage.
  • Be able to identify different cylinder sizes and its fill prices.

Apprenticeship allows you to understand the hidden tricks about the business which otherwise you wouldn’t have known about.

One-month training and apprenticeship at a busy and high performing gas depot will be enough to put one through the basic requirements and tenets of the business.

Location For Cooking Gas Business

Logistics required to set up a cooking gas business is not too much to put together. Major logistics in the business entails getting a good location.

Location for a gas shop or plant will be off from an area where there is always an activity involving naked fire.

Location must be secured and free from children. Also, you have to consider densely populated areas where residents are high- and mid-income earners.

It is also good to set up in a location not so close to other cooking gas dealers and merchants.

However, your location should not be very far away from gas plant that serves as feeder to your outlet or shop, as that might incur high transportation expenses.

Logistics For Cooking Gas Business

In setting up cooking gas retail business, there are certain logistics you must put together.

You must acquire gas cylinders where your gas will be stored for sale.

Gas cylinder comes in different sizes and cost. It is always advisable to procure larger cylinders that can hold higher gas capacity.

Most starters get 12.5kg cylinders and more for a refill. Also hose, burner and regulators will be procured.

All this logistics is what training and apprenticeship will help you get acquitted to.

What Is The Cost Of Starting Up Cooking Gas Business In Nigeria?

This is the big question that potential cooking gas entrepreneurs seeks its answer.

As mentioned earlier, the business can be started at different financial capacities depending on capital.

However, a minimum capital of N200,000 will be required to set up cooking gas retail business in Nigeria.

Nevertheless, bigger capital will help enhance and increase your dealing capacity.

How Lucrative Is Cooking Gas Business In Nigeria?

This is another very important question potential cooking gas investors and entrepreneurs always seek its answer.

Cooking gas business is lucrative and thriving in Nigeria as more people move from kerosene and firewood energy to gas.

Some cooking gas retailers makes profit of between N5000 to N 10,000 daily depending on sales and dealing capacity.


Training and apprenticeship are very important in starting up or venturing into any business.

It is highly advisable that potential cooking gas entrepreneurs engage in at least one full month of apprenticeship or training of how the business is operated, as every business has secrets.


The Author

Emmanuel Igwenagu

Igwenagu Emmanuel is the founder of Nigerian Informer. He holds B.A, M.Sc in Mass Communication. He is a Communication researcher and 112 emergency help line dispatcher.

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